Revolution takeover tussle takes another twist
Just 28% of shareholders so far have backed the 203p per share offer, with 75% required.
The battle to seize control of Revolution Bars took another twist on Monday after shareholders looked to have voted down a takeover bid from Slug & Lettuce owner Stonegate.
In a stock exchange announcement, Revolution disclosed that just 54.7% of proxy votes were in favour of the £101.5 million deal.
It effectively means that just 28% of shareholders in total so far have backed the 203p per share offer, well shy of the 75% required.
Investors vote in person on the deal on Tuesday, and are able to change their vote, but insiders said it is unlikely the approval threshold will be reached.
Following the vote, Stonegate said it is “considering its options”, adding that a further announcement regarding its intentions “will be released in due course”.
It leaves the door open for Deltic, Britain’s biggest night club operator, which is now expected to reignite its interest in a merger with Revolution.
It is thought that Deltic will again push for an all-paper tie up that would see embattled Revolution own 65% of a combined entity and Deltic the remaining 35%, creating a bar giant with annual sales of more than £270 million.
Revolution has already rejected the advance, favouring Stonegate’s offer.
Revolution, which owns more than 60 Revolution and Revolucion de Cuba high street bars, has said of Deltic’s approach that it would not create shareholder value.
For its part, Deltic has accused Revolution of failing to gain a “genuine understanding” of Deltic, and said that it has created a backdrop of “hostility, negativity and ill-informed commentary.”